Spirax-Sarco Engineering plc, the Cheltenham-headquartered thermal energy management and niche pumping specialist, has completed of the acquisition of Thermocoax Developpement and all of its group companies (Thermocoax) following regulatory approval in France, Germany and the USA.
Thermocoax is a leading designer and manufacturer of highly engineered electrical thermal solutions for critical applications in high added value industries. Its core technology is mineral insulated (MI) cable, which comprises single or multiple conductor wires insulated by magnesium oxide, all enclosed within a tubular metal sheath. This construction is extremely robust compared with standard polymer insulated cables and highly resistant to extreme environments such as high temperatures, pressures, vibration and radiation. These cables are transformed into bespoke high value-added functional products, such as heaters and sensors, for specialised, highly certified, critical applications.
Thermocoax will become part of Spirax Sarco’s Chromalox business and the company expects that it will significantly enhance its electrical process heating business, especially in Europe. Thermocoax enables the company to address critical high value applications where product cost is a secondary concern to reliability and performance.
The U.S. market holds significant potential for Thermocoax. It has grown substantially there in the last five years but is constrained by lack of critical mass and local credentials. Chromalox has scale, contacts and reputation in the U.S. that can support faster penetration of the market as well as enhancing its offering to its own customers.
In Europe, Thermocoax is expected to strengthen our market position, capabilities and brand recognition in a broad range of attractive industries and applications beyond those where Chromalox currently operates.
Last year Thermocoax recorded revenues of €49.8 million (£43.9 million). The purchase will be financed from Spirax Sarco’s existing cash and debt facilities.
Nicholas Anderson, Group Chief Executive of Spirax Sarco, said: “We are delighted to complete the acquisition of Thermocoax and welcome our new colleagues to the Spirax Sarco family. Thermocoax will enhance and add significantly to our electrical process heating business in delivering thermal energy solutions to customers. We look forward to leveraging the Spirax Sarco business model and our global footprint to further internationalise Thermocoax and to enhance and grow an already strong business.”